If you've been following the MBS Commentary, you know what a big deal this afternoon could be. Markets have been preparing for it for weeks and MBS Live members have been on top of those movements every step of the way.

This afternoon, when markets are convulsing mere milliseconds after the Fed Announcement, MBS Live members will know what's going on before anyone else. The accuracy and speed of our real-time price stream and alerts is unmatched.

It's been a fairly uneventful, yet positive morning for bond markets. After coming into the domestic session in just slightly weaker territory, bonds got a boost from weaker-than-expected internals in the Durable Goods report. That means that while the headline was stronger than expected, the constituent pieces of the report painted a different picture. In other words, the headline was skewed by aircraft and defense spending, and when that's factored out, manufacturing activity was much weaker than expected.

The cues from the economic data have been augmented by several bigger instances of buying in the Treasury Futures complex. 5 and 10yr futures particularly, have both had more than one "block trade" reported (essentially "big trades" that can act as motivation for other market participants). All this really means is that some larger accounts are buying 5's and 10's for reasons unknown.

10yr yields were close to 2.76 at 8am and moved briskly lower to 2.72 by 10:50am. They've bounced there once and are now waiting for the next move. MBS experienced the same sort of move with Fannie 4.0s rising from 103-25 to 104-02. The next potentially significant event of the day is the 5yr Treasury auction at 1pm.

MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

Christopher Stevens : "NM- when rate sheets were published the 10YR and MBS were on par with yesterday's close. MBS now 4-5 tics better so maybe a little more improvement and we may see a few reprices."

Nathan Miller : "hear that CS... some lenders just posting rates in the last 20 min, seeing par to yest or even .125 worse"

About the Author

A former originator, Matthew began writing for Mortgage News Daily in 2007, covering a wide range of topics. Seeing a need in the marketplace, his focus increasingly shifted toward relating MBS and broader financial markets for loan originators.
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